As the Nov. 26 hearing for final approval of the NAR commission lawsuit settlement approaches, voices from all sides are questioning its wisdom.
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Each week on The Download, Inman’s Christy Murdock takes a deeper look at the top-read stories of the week to give you what you’ll need to meet Monday head-on. This week: As the Nov. 26 hearing for final approval of the National Association of Realtors commission lawsuit settlement approaches, voices from all sides are questioning its wisdom.
It was just over a year ago on Halloween that the Sitzer | Burnett verdict was rendered, setting in motion a year of drama, questions and concerns that roiled the real estate industry. On March 15, NAR reached its settlement with implementation set to go into effect no later than Aug. 17. In the minds of many, that implementation was more or less the last word on all of this unpleasantness, although the final approval wasn’t set to be given until Nov. 26.
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Now, however, one of the members of the settlement class — who also happens to be a law professor with a lot of opinions about the post-settlement landscape — is questioning whether the settlement itself is even valid and is fighting against its finalization.
The University of Buffalo contracts law professor who has repeatedly critiqued new transaction forms since NAR’s proposed settlement was implemented is now taking her fight to the judge.
Tanya Monestier, who sold a home in Rhode Island in 2022 and is, therefore, a member of the homeseller class covered by the settlement, has filed an objection in U.S. District Court for the Western District of Missouri.
In the filing, Monestier asked the court not to give final approval to the NAR deal on Nov. 26 and to reject the plaintiffs’ attorneys’ request for $333 million in fees from the combined $1 billion settlements already reached with NAR and other defendants in seller-led commission lawsuits.
Now, what looked like a legal formality is becoming more uncertain as questions arise around anticipated attorney fees and the relatively paltry award amounts homesellers themselves are expected to receive.
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In the meantime, agents continue to adjust to the new normal and measure the impact of the settlement provisions — and this year’s slow market — on their commissions.
A year after the Sitzer verdict, here are my top 5 takeaways
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In the post-Sitzer-Burnett era, Cara Ameer writes, we must be better informed, better prepared and have thorough consultations with the buyers and sellers that we interact with, to provide them with the best service and advice.
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What would you like to see NAR focus on next? Pulse
Whether you’re planning to attend this year’s NAR NXT or simply follow Inman’s coverage of the event, we want to know what would you like to see the trade group focus on next?
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